Customers see the liquidity,stock market participants concern about the profits.... there may be liquidity in the bank for its survival for few more months,or govt may help them out of way.... but investors worry is whether bank gives profits or not.... at this point,the management/rbi/fm not commented on their profits.... that is the reason for stock falling on daily basis.... the lquidity and profits are quite different terms....

Infy,one of the most respectable companies in inida has givien negative guidance for the coming quarter.... that cant be digested by the market.... if the sitution continues like this for some more time in the continents of US and Erope,the topline could be effected by nearly 30% which can give lot of preesures on the company`s business model....so,as far as infy is concerned worst has just begun.... pl note that there are no clear signs of reversal of recession in global economy soon....

Regarding markets behaviour,yes there may be a chance of some bounce as global leaders working hard towards the stabilisation of financial markets worldwide.... but continuous fii sellings,lack of domestic investors confidence,expected mutual funds redemption pressures etcetc may offset near term positives if any.... pl note that negative surprise is given by latest iip numbers.......

Yes,in bear markets, intelligent investors concentrate on dividend pay outs.... buying stocks which have huge dividend record is defintely better idea in this situation.... but stick to quality grwoth oriented business models.... there may be few corporates sell their shares and pay the dividends.... be careful in selecting counters on the basis of dividend criteria.......

Yes dear incrediblinvest,crashing commodity and fallen crude prices will help the rupee to recover from its all time lows.... but, present outflows by fiis causing the worry.... we have dollar outflows in this year sofar and analysts expecting there may not be positive flows in 2009 also.... ofcourse rupee is unnecesarily beaten down to much lower levels in recent days....

Yes,inflation in india will come down to single digit mark soon.......

Radhika,cash banks them selves are in failure mode in recent times.... who cares about land banks/people banks.... market laughing at us if we talk about land bank,in present situation....

For example i have bought the gulf oil corp on the basis of land bank value,now it is quoting at exactly 50% of my buy price.... ofcourse it is quoting near to 10% of its peak price.......

For the past few sessions,the attack is centralised on frontline stocks only despite support from govt funds.... govt arranging easy exit rout to few fiis in front line counters.... if this type of buyings continue by uti/lic,these organisations also will be in trouble in the near term.... if interested,select your choice of 3/4 quality midcaps of growth counters which are beaten down badly for investment.... ...

Dear radhika,is there any chance of psu banks failing during this turmoil.... few observers beleive today`s crr cut is mainly announced for survival of few psu banks.... so,now the banks are said to be alive atleast for some time.... but 60000 crores liquidty is just like peanuts for stock market fii outflows.......

Dear novice,the stock markets collapsed/crashed more than 50% within few months.... analysts have been telling us at diiferent stages as fair valued levels.... if felt 10000 is fair level,somebody talke 9000 and few otheres tell 8000 and so on like that.... now people are not caring health of markets,worrying about the welath of them.... many investors lost more than 90% investment in stock markets in recent times.... finally now,all the hopes are given up and specailists telling the poor fundamentals ahead with bad corporate performance in coming terms.... that is a cause of worry here......

`Global response` Bush appears with world financial leaders - vows nations will work together. President Bush on Saturday once again tried to reassure a nervous public that world leaders were working together to address what is unfolding as the worst global financial crisis since the Great Depression. "We recognize that the turmoil in the financial markets is affecting all our citizens," Bush said, standing in front of financial ministers from the world`s top economies gathering in the nation`s capital. "All of us recognize this is a serious global crisis that requires a serious global response for the good of our people." The president did not announce any new actions to stem the financial panic gripping the world, but reiterated measures world leaders are taking to strengthen financial systems. Bush mentioned the latest step being contemplated by the United States - injecting much-needed capital into banks. Treasury Secretary Henry Paulson said Friday that the administration may use the authority granted in the $700 billion rescue plan enacted on Oct. 3 to take ownership stakes in financial institutions to stabilize and restore confidence in them. Other countries are also taking action to inject liquidity, protect citizens` savings and strengthen financial institutions in their own nations, he said. Finance leaders from the world`s top economies, the Group of Seven, pledged Friday night to take steps to keep leading institutions afloat, unfreeze credit, ensure banks have enough capital to kick start lending and safeguard depositors` funds and restart the secondary markets for mortgages and other securitized assets. It`s vital that countries work together so that their actions don`t undermine others, Bush said, pointing to the emergency interest rate cut enacted this week as an example of a coordinated effort. He plans to expand discussions beyond the G-7 ministers - representing the United States, Britain, Canada, France, Germany, Italy, and Japan - to the leaders of the G-20 emerging market and industrialized nations, who are also meeting Saturday. "We`re in this together, we`ll come through this together," the president said. But he warned that it will take time to see the results. So far, all the measures world leaders have taken have done little to calm jittery markets. "The benefits will not be realized overnight," the president said. Week of fear The president`s remarks cap a week in which fear gripped the financial markets worldwide. The Dow Jones industrial average had its worst week ever, falling just over 1,874 points, or 18%. Wall Street lost roughly $2.4 trillion in market value during the week, according to losses in the Dow Jones Wilshire 5000, the broadest measure of the market. Since the mid-September collapse of Lehman Brothers sparked the latest chaos in the financial markets, Bush has repeatedly tried to reassure the Americans. "We can solve this crisis - and we will," said Bush, in a speech at the White House Friday, his 27th commentary on the nation`s financial health. "Here`s what the American people need to know: The U.S. government is acting, and we will continue to act, to resolve this crisis and return stability to our markets," he said. The government has started taking a number of steps to attack the crisis, Bush said Friday. These include helping homeowners to refinance into more affordable mortgages; cutting the target for the federal funds rate; unveiling a plan to support the market for commercial paper; and offering government insurance for money market mutual funds. The plan will authorize the Treasury to buy bad mortgage-related investments from finance companies, unfreezing the credit markets by freeing up banks and finance firms to lend once again. By Tami Luhby...

Hi, The seeds of a down turn are sown when the markets are at their highest. Companies basking in high growth rates and profits seem to think that the orders will continue to come for ever. Capacity expansions are done with optimistic projections. Normally the down turn comes before the expanded capacity is available. This story is seen to repeat over years. I was told once that the best time to tighten your belt is during the heights of boom. Retrenching people after down turn and re hiring when next up tun comes is a very bad way. Not only does it demoralise your staff but you loose trained people. I do not think the economy will collapse. The cycle of economy will be towards slow growth. Companies which hav ebetter financial management, will recover and those who have gambled will close. Better stick to time tested companies in these times. It may be a good time to start investing. Regards ...

Dear marketman It is not India but the US that is going through the worst phase after the 1930 crash it witnessed. This has led the mass exodus of dollars and FII`s from our country too, as is witnessed from rest of the world. The Indian economy stands firm even in this crisis. The present situation is very tricky and painful for all. But the ones who are on the right side of the fall or the ones who moved out before the fall are the gainers. So the oppourtunity is huge but only for the smart ones. Secondly this fall of the biggies bring huge oppourtunity for India in the mid and long term. None of our banks went bust, we don`t have a subprime like situation, and also we don`t have to bail out anything. We are steady on our growth path. The Nuke deal get signed soon, also still Indian firms are on the buy mode and acquiring firms from rest of the world, we still have the best GDP growth rate in the world. As and when the world realize these facts we will be the biggest benificary. So biggest fall also opened the door for biggest gains. This is just the start of Indian emergence into big leaque of developed world. Regards ...

who said Rs.275 is down target for this share it will definitely go to 210 below that 180 possible may be that is a bottom for this share. at any case it may not down below 180. Happy investing....

Markeman, Okay, do u think its good to buy dividend paying stocks now which are at 52 week lows so we get both dividend and appreciation when markets regain their lost glory? Are there companies which have to compulsorily pay dividend.. I MEAN by complusory obligatory. Thanks...

Agreed to your view. Now i have the answer of your ruppe argument. Oil prices are around $77.7 This is going to help rupee and also inflation. Investors have not burnt anything they still have the same amount of stocks. It is the Punters and traders like you have lost money in the market. I still have many shares and I am maintaining it for a longer term. If start trading then you will make money only for your broker not for your self. I have written this after analysing that you are from trading camp. Cheers...

What This Economy Means for You As the most serious credit crisis in decades rocks your finances, you`ve got to have questions. Here are the answers. Back in January, when it first became clear the economy and the markets were in for a rough patch, the consensus forecast was that we`d have seen the worst of it by now. Perhaps you put a bit more cash in the bank, trimmed the fat from your budget and tweaked your 401(k) allocations, but otherwise you were confident you could stay the course. Then came the extraordinary events of September: the government`s seizure of Fannie Mae and Freddie Mac and rescue of American International Group; the bankruptcy of Lehman Brothers and pending sale of Merrill Lynch; the first money market fund loss in more than a decade; a series of bank fire sales; and a politically charged federal bailout plan that could carry a $700 billion price tag. You can`t help but wonder what all this means to you. Here are some key questions, from when stocks could bounce back to what`s ahead for the economy and home prices. Choose a topic to get some answers. The Economy How Did We Get Here? By now you likely know that the crisis in the financial markets is the culmination of years of reckless mortgage lending and Wall Street dealmaking. It`s the final gasp of the burst housing bubble. But how exactly did this happen? To find the root cause of Wall Street`s woes, you have to go back to the collapse of a different bubble - tech. In 2001, after the dotcom craze ended and the bear market began, the Federal Reserve started aggressively slashing short-term interest rates to stave off recession. By eventually reducing rates to a historically low 1%, the Fed reinflated the economy. But this cheap money sparked a new wave of risk taking. Homeowners, armed with easy credit, snapped up properties as if they were playing Monopoly. As prices soared, buyers were able to afford ever-larger properties only by taking out risky mortgages that lenders were happily approving with little documentation or money down. At the same time, Wall Street investment banks got a brilliant idea: bundle the riskiest of these mortgages, then slice and dice these portfolios into tradable bonds to be sold to other banks and investors. Amazingly, bond-rating agencies slapped their highest ratings on the "best" of this debt. This house of cards came down when subprime borrowers began defaulting on their mortgages. That sent housing prices tumbling, unleashing a domino effect on mortgage-backed securities. Banks and brokerages that had borrowed money to boost the impact of those investments had to race to raise capital. Some, like Merrill Lynch, were forced to sell. Others, like Lehman Brothers, weren`t so lucky. "What we always tell investors is beware of too much leverage in a company," says Brian Rogers, chairman and portfolio manager for T. Rowe Price. "Leverage is the enemy of the investor." Sure, everyone from former Fed chairman Alan Greenspan to your friends and neighbors played a role in stoking this casino culture. But troubled banks and brokerages can`t pass the blame. "These firms closed their eyes and made very bad bets on risky securities that they didn`t truly understand," says Jeremy Siegel, finance professor at the University of Pennsylvania`s Wharton business school. "Investments that they did not have to make led to their demise." How Bad Could the Economy Get? Before the meltdown, economists fell into two camps: those who thought the economy had already slipped into recession and those who thought a recession could still be avoided. While forecasters still differ on the timing and severity of a downturn, "the consensus view is that we`re headed for recession and will be in one until next year," says Mark Zandi, chief economist for Moody`s Economy. com. Cont........